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TMI Blog2005 (10) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of relevant Central Excise Rules. The Dy. Commissioner withdrew the facility of fortnightly payments on 29-1-01 on the ground that appellants had defaulted in payment for the following fortnights :- 1. Second fortnight of September 2000 2. Second fortnight of October 2000 3. Second fortnight of November 2000 4. First fortnight of December 2000 5. Second fortnight of December 2000 3. Hence the appellants were directed to pay duty on consignment basis through their PLA. The appellants filed an appeal to the Commissioner of Central Excise (Appeals). Simultaneously, they filed a writ petition in the High Court of AP. Writ Petition was dismissed and the appellants were directed to pursue the appellate remedy. After hearing the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und of excess interest paid to the extent of Rs. 17,40,163/- on the following grounds. (a) Due to illegal forfeiture order by Dy. Commissioner, the appellants could not utilize their Cenvat account resulting in mobilization of cash for PLA payments. (b) Due to forfeiture order dated 2-2-01, they were forced to pay duty on consignment basis in the PLA and therefore, they could not pay the duty for the second fortnight on January 01 in time. (c) Though the appellants cleared the arrears by debit in their Cenvat account, the department insisted on payment only through PLA along with interest amounting to Rs. 20,94,327/-. (d) That the appellants were liable to pay interest only for the period from 6-1-01 to 2-2-01 which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th interest. The respondents have not substantiated their case that the default of duty payment for the second fortnight of the December 2000 and second fortnight of January 2001 has resulted due to the order dated 29-1-2001 of the Deputy Commissioner. The respondent s contention that Cenvat credit of more than 3 crores was lying unutilised as on 31st March, 2001 will not be of any help as the respondents can pay duty from the Cenvat credit available as on 31-12-2000 and 31-1-2001 for payment of duty for the second fortnights of December 2000 and January 2001. The respondents are required to pay the defaulted duty first along with interest and effect their clearances only when sufficient funds are available for payment of duty consignment w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roneous forfeiture order not issued it would have enable them to pay the duty for the 2nd fortnight of December 2000 with interest and the duty for the 2nd fortnight of January 2001 in time. To substantiate this they furnished copies of R.T. 12 returns showing the payment of consignment-wise duty amounting to Rs. 4,75,31,124/-together with interest of Rs. 20,984,327/- thereon. Further to this they pointed out that Cenvat credit of more than three crores was lying in balance unutilized by 31st March, 2001. This amount was originally adjusted towards the arrears of duty for the said two fortnights by debiting in the RG 23A account on different dates but later on taken as credit again on payment of the whole arrears of duty in PLA at instance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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